Virgin Galactic reports $159m Q1 net loss
May 11, 2023
By Chris Forrester
A growing loss in trading is hardly surprising given that Virgin Galactic, the sub-orbital tourist rocket scheme, has been stuck on the ground these past two years. But that is about to change with a sub-orbital flight scheduled for late June (and a non-commercial flight due later in May) and following on from a successful test flight in April.
Michael Colglazier, CEO at Virgin Galactic, said: “We are excited to return to space with the ‘Unity 25’ mission planned for the end of May, and we are actively readying for commercial service to begin in late June. Concurrently, we are making steady progress on the development of our Delta Class spaceships, the driver of revenue growth and profitability in the business. Our strong cash position, combined with focused cost discipline and strategic investments in our growth initiatives, will enable our business to scale over the long-term.”
He reported that Virgin Galactic’s Q1 cash position remained strong, with cash, cash equivalents and marketable securities of $874 million as of March 31st 2023. Its Net loss of $159 million, compared to a $93 million net loss in the first quarter of 2022, primarily driven by investments related to the development of the future fleet and enhancements for the current fleet.
Net cash used in operating activities totalled $136 million, compared to $66 million in the first quarter of 2022. Virgin Galactic generated $32 million in gross proceeds through the issuance of 5.8 million shares of common stock as part of the Company’s at-the-market offering program announced on August 4, 2022.
The company said: “Our expectations for Q2 and fiscal year 2023 as of May 9, 2023 and are subject to substantial uncertainty. Our results are based on assumptions that we believe to be reasonable as of this date, but may be materially affected by many factors, as discussed below in “Forward-Looking Statements.”